president obama has just arrived in one of the places the cuts could hit workers the hardest, the huge naval base in newport news. danielle nottingham has the latest developments on the sequester. >> reporter: president obama is visiting a shipyard in new prt news, virginia today -- newport news, virginia today. he's warning that people who work on ships could face layoffs if budget cuts kick in this friday. military leaders talked about how challenging the cuts will be at a congressional hearing this morning. >> if we do not have the resources to train and equip the force, our soldiers, our young men and women are the ones who will pay the price potentially with their lives. >> reporter: with the clock ticking, it's small businesses like this communications contractor that are already bracing for the impact of the cuts, especially hits to the defense department. >> for us it could go into the millions of dollars. >> reporter: pay toe alfonso -- pay toe alfonso employs 120 workers in washington, d.c. his business relies on contracts with government agencies that will see their buckets